Scheme for Creation of Backward and Forward Linkages

Scheme for Creation of Backward and Forward Linkages

Scheme Overview

Sponsoring Authority     :      MoFPI (Ministry of Food Processing Industries)

Last date to apply          :      28.02.2021 by 5:00PM (ST/NER Categories)

Objective :

The objective of the scheme is to provide effective and seamless backward and forward integration for processed food industry by plugging the gaps in supply chain in terms of availability of raw material and linkages with the market. The scheme will enable linking of farmers to processors and the market thereby ensuring remunerative prices for their produce

Patten of Assistance :

1. 35% of Eligible Project Cost in General Areas
2. 50% of Eligible Project Cost in difficult areas (SC/ST will be considered as difficult areas)
3. Max Cap - 5 Cr
4. Credit Linked not back ended
5. Three Installments - 25%, 40% and 35%
6. Eligible Project Cost - Cost of Plant & Machinery + Technical Civil Work

Who are eligible : The applicants organizations such as Central and state PSUs, / Joint Ventures , Farmer Producer Organization (FPOs)/ NGOs/ Cooperatives / SHGs/ Public and Private companies/ Limited Liability Partnerships, Corporate Entity/ Proprietorship Firms / Partnership Firms, etc.

Release of Subsidy :

• 1st Instalment of 25% After utilization of 25% of Promoter contribution and 25% of TL towards Eligible Project Cost, after site inspection within 8 months from date of approval letter (within 10 months for Difficult)
• 2nd Instalment of 40% After utilization of 1st Instl., 65% of Promoter contribution and 65% of TL towards Eligible Project Cost, after Site Inspection within 14 months from date of approved letter (within 16 months for Difficult)
• 3rd & Final Instalment of 35% After utilization of 2nd Instl. 100% of Promoter contribution, 100% TL, Completion of project, Stats Commercial Operations and after joint inspection, within 18 months from date of issue of approval letter (within 10 months for Difficult)

Eligible sectors :

1. Horticulture,
2. Milk & Milk products
3. Meat, Poultry, Fishery, Marine, Piggery
4. Ready to Eat/ Ready to Food Products
5. Honey, Coconut, Spices, Mushroom
6. Retail Shops for Perishable Food Products